Discuss the two ways that product differentiation affects the demand for the product.

Discuss: Product differentiation and health care costs

1. Pricing differentiation: Different price points can influence the purchase of a product. This is because they offer different quality features or prices. This allows consumers to make choices within their means and makes it easy for companies to determine the prices most appropriate for their markets.
2. Differentiation through brand: This allows businesses to differentiate their products from the ones of others. To differentiate products from their competitors and to create an emotional connection with customers, companies may employ branding strategies such as slogans and logos.

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